BHEL stock gains 2% after signing agreement with DRDO; check details here

BHEL rose over 2 per cent after the company signed a License Agreement for Transfer of Technology with Defence Metallurgical Research Laboratory

BHEL share price today: Shares of Bharat Heavy Electricals (BHEL) rose over 2 per cent on Monday, September 2, to hit an intraday high of ₹213.3 on the NSE after the company signed a License Agreement for Transfer of Technology (LAToT) with Defence Metallurgical Research Laboratory (DMRL), Hyderabad, a research laboratory of the DRDO. 

 

At 12:50 PM, the company's share price was trading 1.5 per cent higher at ₹211.1 per share on the NSE. In comparison, NSE Nifty50 was up 0.57 per cent at 24,565 levels. The market capitalisation of the company stood at ₹73,621.27 crore. The stock has surged over 18 per cent from the 52-week low of ₹176 touched on March 3, 2025.

 

The agreement allows BHEL to manufacture fused silica radar domes using advanced pressing and sintering technology. It will enable BHEL to manufacture radar domes domestically. These domes are crucial for seeker-based guidance systems used in India’s missile programmes. In a regulatory filing dated August 30, BHEL stated that this technology transfer will enhance the country’s self-reliance in strategic defence systems.  READ STOCK MARKET LIVE UPDATES TODAY 

However, the details of consideration in the agreement and other significant terms and conditions of the agreement have been kept confidential. 

BHEL Q1 results

In the April-June quarter of fiscal 2026 (Q1FY26), the state-run firm had posted a consolidated revenue from operations of ₹548.69 crore, broadly flat compared to ₹548.49 crore in the year-ago period. The company's net loss widened to ₹455.5 crore against ₹211.4 crore in the Q1FY25, primarily due to higher expenses.

 

BHEL’s order inflow during the reported quarter was ₹13,445 crore. As of June 30, 2025, the company’s total outstanding order book was ₹2,04,375 crore.

Brokerages on BHEL Stock

JM Financial expects BHEL's performance to improve from Q3FY26 given the profile of major projects under construction. The total order book is likely to increase to ₹2,250 billion by March 2026. 

 

"As execution of legacy projects are nearing completion and industry orders-mix improves, Ebitda margin is likely to improve gradually from 4.4 per cent in FY25 to at least 11 per cent in FY28," it said in a report earlier. Ebitda stands for earnings before interest, tax, depreciation and amortisation.  ALSO READ | Apollo Micro shares hit record on contract wins; stock rallies 130% in 2025

JM Financial maintained a 'Buy' rating on the stock with a target price of ₹278. 

 

According to analysts at Nuvama Institutional Equities, BHEL reported muted Q1FY26 results primarily due to subdued execution, while higher other operating expenditure dragged operating margin to 9.8 per cent. The steady flow of new orders supports the view that the thermal power sector is making a comeback. Since BHEL holds a near monopoly with over 90 per cent market share, it is expected to win around 17 GW of new projects over the next two to three years.

Nuvama retained its 'Buy' rating on the stock with a revised target price of 335 from ₹360 per share earlier.